Q4 2021 MGM Resorts International Earnings Call

Yes.

Good afternoon, and welcome to the MGM resorts International fourth quarter and full year 2021 earnings conference call joining the call from the company today are Bill Hornbuckle, Chief Executive Officer, and President Corey Sanders, Chief Operating Officer, Jonathan <unk>, Chief Financial Officer.

Speaker 1: Good afternoon and welcome to the MGM Resorts International fourth quarter and full year 2021 earnings conference call. Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President, Corey Sanders, Chief Operating Officer, Jonathan Halkyard, Chief Financial Officer, Hubert Wang, President and Chief Operating Officer of MGM China and Sarah Rogers, SVP of Corporate Finance.

Hubert Wang President and Chief operating officer of MGM, China, and Sarah Rogers SVP of corporate finance.

Speaker 1: Participants are in a listen-only mode. After the company's remarks, there will be a question and answer session. In fairness to all participants, please limit yourself to one question and one follow-up. Please note, this conference is being recorded.

<unk> are in a listen only mode. After the company's remarks, there will be a question and answer session in fairness to all participants please limit yourself to one question and one follow up please.

Please note this conference is being recorded.

Now I would like to turn the call over to Sarah.

Good afternoon, and welcome to the MGM resorts International fourth quarter and full year 2021 earnings call. This call is being broadcast live on the Internet at investors day, MGM resorts Dot Com and we have also furnished our press release on form 8-K to the SEC on this call we will make forward looking statements under this.

Speaker 2: Good afternoon and welcome to the MGM Resorts International fourth quarter and full year 2021 earnings call. This call is being broadcast live on the internet at investors.mgmresorts.com. And we have also furnished our press release on form 8K to the SEC. On this call, we will make forward-looking statements under the safe harbor provisions of the federal securities laws. Actual results may differ materially from those contemplated in the state of California.

Safe Harbor provisions of the federal Securities laws actual results may differ materially from those contemplated in these statements.

Speaker 2: Additional information concerning factors that could cause actual results to differ from these forward-looking statements is contained in today's press release and in our periodic filings with the SEC. Except as required by law, we undertake no obligation to update these statements as a result of new information or otherwise. During this call, we will also discuss non-GAAP financial measures and talking about our performance.

Additional information concerning factors that could cause actual results to differ from these forward looking statements is contained in today's press release and in our periodic filings with the SEC, except as required by law. We undertake no obligation to update these statements as a result of new information or otherwise during this call. We will also.

Discuss non-GAAP financial measures in talking about our performance you can find the reconciliation to GAAP financial measures in our press release and Investor presentation, which are available on our website. Finally this presentation is being recorded I will now turn it over to bill for them by Paul Thank.

Speaker 2: You could find the reconciliation to GAAP financial measures in our press release and investor presentation which are available on our website.

Speaker 2: Finally, this presentation is being recorded. I will now turn it over to Bill Hornbuckle.

Speaker 3: Thank you, sir, and thank you all for joining us today. We had a very strong end to a great year producing our highest consolidated adjusted EBITDA quarter ever in the history of the company.

Thank you Sir and thank you all for joining US today, we had a very strong end to a great year, producing our highest consolidated adjusted EBITDAR quarter ever in the history of the company.

Speaker 3: Our Las Vegas strip resorts delivered yet another all-time quarterly EBITDA record, and our regionals delivered a fourth quarter EBITDA record. Our strip and regional margins also remain very strong in the fourth quarter. These results are testament to a very talented team across the country, our sharpened focus on operational efficiency, and the proven resiliency of demand for the services and experiences that we provide at MGM resorts despite the overhang of COVID.

Las Vegas strip resorts delivered yet another all time quarterly EBITDA record and our regional just delivered a fourth quarter EBITDA record our strip and regional margins also remained very strong in the fourth quarter. These results are testament to a very talented team across the country, our sharpened focus on operational efficiency and the pre.

The resiliency of demand for the services and experiences that we provide at MGM resorts. Despite the overhang of Covid our.

Speaker 3: Our employees remain the cornerstone of our organization and I am so appreciative of their dedication to our company and our guests.

Our employees remain the cornerstone of our organization and I am so appreciative of their dedication to our company and our guess we could not have achieved these phenomenal results without a world class team members. We know it has not been the easiest of journeys over the last couple of years, but I cannot say, thank you enough and how grateful I am for everyone in the M. G M family.

Speaker 3: We could not have achieved these phenomenal results without our world-class team members. We know it has not been the easiest of journeys over the last couple of years, but I cannot say thank you enough and how grateful I am for everyone in the MGM family. Simply thank you.

Simply thank you.

Speaker 3: Our strong employee base and our leadership team also propelled us forward to advance our strategic plan and long term vision to simply be the world's premier gaming and entertainment company. As a reminder, our strategic plan consists of the following four priorities.

Our strong employee base and our leadership team also propelled us forward to advance our strategic plan and long term vision to simply be the world's Premier gaming and Entertainment company. As a reminder, our strategic plan consists of the following four priorities investing in our people and planet providing unique experiences for our guests.

Speaker 3: Investing in our people and planet, providing unique experiences for our guests by leveraging data-driven customer insights and digital capabilities, delivering operational excellence at every level, and allocating our capital responsibly to yield the highest return for our shareholders.

By leveraging data driven customer insights and digital capabilities delivering operational excellence at every level and allocating our capital responsibly to yield the highest return for our shareholders.

Speaker 3: I briefly talked on the great results we delivered in the fourth quarter and Jonathan will go into more detail in his remarks.

I briefly touched on the great results, we delivered in the fourth quarter and Jonathan will go into more detail in his remarks for now I would like to spend some time highlighting the significant milestones we achieved in 'twenty one to transform our company first we took steps to complete our goal of monetizing our real estate assets meaningfully bolstering our.

Speaker 3: For now, I would like to spend some time highlighting the significant milestones we achieved in 2021 to transform our company.

Speaker 3: First, we took steps to complete our goal of monetizing our real estate assets, meaningfully bolstering our domestic cash position. We have simplified our structure, bringing the operations of City Center fully under our control, selling MGP DaVicci, a transaction that is expected to close in the coming months.

The cash position, we have simplified our structure, bringing the operations of Citycenter are fully under our control selling M. G. P da Vinci a transaction that is expected to close in the coming months. We're also making strategic changes in our Las Vegas portfolio with the announced acquisition of the operations of the Cosmopolitan and all of Us Vegas.

Speaker 3: We're also making strategic changes in our Las Vegas portfolio with the announced acquisition of the operations of the Cosmopolitan of Las Vegas and the sale of the operations of the Mirage. We believe these transactions will enhance and diversify our offerings in one of the most desirable and competitive destinations in the world.

And the sale of the operations of the Mirage.

We believe these transactions will enhance and diversify our offerings and one of the most desirable and competitive destinations in the world.

Speaker 3: BetMGM, our joint venture with Entain, has established a strong brand and leaders of position with the U.S. sports betting and iGaming space, finishing 2021 as the number one operator in iGaming and the number two player in overall sports in iGaming. I am incredibly pleased with BetMGM's excellent execution to date.

That M. G M. Our joint venture with chain has established a strong brand and leadership position with the U S sports betting and I gaming space, finishing 2021 as the number one operator and I gaming and the number two player in overall sports and I gaming I am incredibly pleased with Beth M. G M excellent execution to date.

Speaker 3: We have substantial progress in Japan, where the city of Osaka chose us as their partner to build and operate a new world-class integrated resort. Doing so will allow us to continue to diversify geographically into what we believe will be one of the world's largest gaming markets in the world.

We have substantial progress in Japan with the city of Osaka, Joseph as their partner to build and operate a new world class integrated resort doing so will allow us to continue to diversify geographically into what we believe will be one of the world's largest gaming markets in the world.

Speaker 3: We also returned meaningful cash to our shareholders.

We also returned meaningful cash to our shareholders and finally, we bolstered our executive team last year with the addition of Jonathan and to lock Menotti, who recently joined US from Disney They both have already been vital to the execution of our long term goals.

Speaker 3: And finally, we both said our executive team last year with the addition of Jonathan and Talak Mundati who recently joined us from Disney. They both have already been vital to the execution of our long term goals.

Speaker 3: We are pleased with all that we've accomplished in 21, and we're even more excited how this sets us up for strong momentum into 2022.

We are pleased with all that we've accomplished in 'twenty, one and we're even more excited how this sets us up for strong momentum into 2022.

Speaker 3: Starting with BetMGM, we remain confident in the team's ability to sustain and advance its leadership position in both new and existing states. And evidenced by this confidence, both owners anticipate collectively investing another 450 million in BetMGM this year. You heard from Adam and Gary on their recent call and we'll hear more from the BetMGM team during their investor day in May.

Starting with bet M. G M. We remain confident in the team's ability to sustain and advance its leadership position in both new and existing states.

Evidenced by this confidence both owners anticipate collectively investing another 450 main embed M. G. M. This year, you heard from Adam and Gerry on their recent call and we'll hear more from the bad M. G. M team during their investor day in May.

In terms of new expansion opportunities, we're working with our partners Orix in the city of Osaka to submit an area development plan to the central government by April we remain hopeful and confident in being awarded a license later this year to build an integrated resort in Japan stateside. We're encouraged by the continued progress being made in the commercial gaming license.

Speaker 3: In terms of new expansion opportunities, we're working with our partners, Oryx and the City of Osaka, to submit an area development plan to the central government by April . We remain hopeful and confident in being awarded a license later this year to build an integrated resort in Japan.

Speaker 3: Stateside, we're encouraged by the continued progress being made in the commercial gaming license opportunity in New York, which could be awarded as early as this year. We believe MGM is extremely well positioned given our existing operations in Empire City. And finally, as we think about organic growth in our business, we see an opportunity to deepen loyalty and garner incremental revenue share by maximizing the full potential of our network of premium user properties and entertainment venues across the US.

Opportunity in New York, which could be awarded as early as this year. We believe M. G. M is extremely well positioned given our existing operations and Empire City and finally, as we think about organic growth in our business, we see an opportunity to deepen loyalty and garner incremental revenue share by maximizing the full potential of our network of Premier.

These are our properties and entertainment venues across the U S.

Speaker 3: We are addressing this opportunity through a fully coordinated company-wide effort, which leverages our strategic investments in advanced analytics, data, and technology. Our goal is to identify and efficiently acquire high-value gaming and non-gaming customers by optimizing our target marketing, improving on-property service, and improving new experiences for those guests throughout their visit.

We are addressing this opportunity through a fully coordinated company wide effort, which leverages, our strategic investments in advanced analytics data and technology. Our goal is to identify and efficiently acquire high value gaming and non gaming customers by optimizing our target marketing improving on property service and improving new experiences.

For those guests throughout their visit.

Speaker 3: We view our loyalty program as an integral part of this effort to acquire, to engage, and to retain high-value customers. On February 1st, we announced the enhancement and the rebranding of our customer loyalty program from MLive to MGM Rewards.

We view our loyalty program is an integral part of this effort to acquire to engage and to retain high value customers on February 1st we announced the enhancement and the rebranding of our customer loyalty program from M life to M. G M rewards.

Speaker 3: Not only does the name better align with our business, but the updated program allows us to address key opportunities including targeting high-value non-gaming customers in addition to high-volume gaming customers, incentivizing cross-property patronage and tier progression with more motivating benefits.

Only just a named better aligned with our business, but the updated program allows us to address key opportunities, including targeting high value non gaming customers. In addition to high gaming high volume gaming customers Incentivizing cross property patronage and tier progression with more motivating benefits and further active.

Speaker 3: and further activating BETT MGM's customers and our properties. In 2021, approximately 42% of our new database enrollments came from BETT MGM. We envision that this rapidly growing group of omnichannel customers will be able to traverse seamlessly between our online and offline offerings over time, experiencing MGM Resort's benefits proportionate to their tier status.

<unk> bet M. G M <unk> customers in our properties in 2021 approximately 42% of our new database Romans came from Beth M. G. M. We envision that this rapidly growing group of Omnichannel customers will be able to traverse seamlessly between our online and offline offerings over time experiencing MGM resorts benefits proportionate to their tier.

Status.

Speaker 3: M. Jim rewards is the first of several steps in organic growth journey to attract and retain more high value gaming digital gaming and non gaming customers over the next several years We'll be investing over 2 billion into our properties creating customer centric experiences and services in addition to the needed technology platform and advanced analytics to better engage and service our guests and drive market share in our principal market

I'm Jim rewards is the first of several steps in organic growth journey to attract and retain more high value gaming digital gaming and non gaming customers over the next several years, we'll be investing over 2 billion into our properties, creating customer centric experiences and services. In addition to the needed technology platform and advanced analytics.

To better engage and service, our guests and drive market share and our principal markets.

Speaker 3: Before I turn it over to Jonathan to discuss our fourth quarter and full year results, I'd like to make some high level comments on our current trends and the future outlook.

Before I turn it over to Jonathan to discuss our fourth quarter and full year results I'd like to make some high level comments on our current trends and the future outlook.

Speaker 3: As you all know, the emergence of omnicron variant November led to rapid rise in COVID cases.

As you all know the emergence of omni Cranberry November led to rapid rise in Covid cases, Fortunately it didn't put a damper on the year end and plans, we had and had a great December However January which typically relies more heavily on group business in Las Vegas saw significant headwinds driven by groups, mostly looking to postpone until.

Speaker 3: Fortunately, this didn't put a damper on the year end and plans we had and had a great December . However, January , which typically relies more heavily on group business, in Las Vegas saw significant headwinds, driven by groups mostly looking to postpone until later in the year. Cancellations, while elevated, were mostly concentrated in a very short term with limited impact beyond March. CES in January was the most visible event this year with attendance down approximately 70%.

Later in the year cancellations, while elevated were mostly concentrated in a very short term with limited impact beyond March CES in January was the most visible event this year with attendance down approximately 70%.

Speaker 3: Despite the tougher January , we're happy to see COVID cases again on the downswing across the broader U.S. Cancellations are declining and group lead volumes are normalizing. Forward hotel bookings have been stable over the past few weeks and are once again starting to outpace 2019 levels. I expect that given positive COVID trends in Nevada, we'll start to see meaningful loosening of COVID restrictions in the very, very near future, consistent with what we have seen in other states.

Despite the tougher January we're happy to see Covid cases, again on the downswing across the broader U S. Cancellations are declining and group lead volumes are normalizing for hotel bookings had been stable over the past few weeks and are once again, starting to outpace 2019 levels I expect that given positive COVID-19 trends in Nevada.

We will start to see meaningful loosening of Covid restrictions and the very very near future consistent with what we have seen in other states.

Furthermore, our weekends have remained very strong in fact this past weekend the city had the east West Shrine Bowl. The NHL All star game at T. Mobile Arena, the NFL Pro Bowl Allegiant Stadium, Garth Brooks at Dolby Life, I had park M. G M.

Speaker 3: Furthermore, our weekends have remained very strong. In fact, this past weekend, the city had the East West Shrine Bowl, the NHL All-Star Game at T-Mobile Arena, the NFL Pro Bowl Allegiant Stadium, Garth Brooks at Dolby Live at Park MGM, and a pay-per-view fight in the Michelob Ultra Arena at Mandalay.

And a pay per view fight in the Michelob Ultra arena at Mandalay, Our strip hotels ran a 91% on Friday and 98% on Saturday, there's some upcoming weekend, we expect a very strong Super Bowl turn out and we looked further and as we look further out for the first time ever the Grammys, we're coming to Las Vegas in April and we're hosting this iconic event.

Speaker 3: Our strip hotels ran 91% on Friday and 98% on Saturday. This upcoming weekend, we expect a very strong Super Bowl turnout. And we look further, and as we look further out, for the first time ever, the Grammys are coming to Las Vegas in April , and we're hosting this iconic event at the MGM Grand.

At the MGM Grand Las Vegas is also serving as the host of the NFL draft in a couple of months' time. These.

Speaker 3: Las Vegas is also serving as the host of the NFL draft in a couple of months time.

Speaker 3: These types of wins continue to demonstrate that the city, with MGM Resorts at its epicenter, remains a resilient and leading destination for exceptional entertainment and now, most

These types of wins continue to demonstrate that this city with MGM resorts at its epicentre remains a resilient and leading destination for exceptional of entertainment and now most notably sports.

Speaker 3: Turning to our regional properties, we delivered an all-time record EBITDA year in 2021, with most of our properties leading in GGR share with their respective markets.

Turning to our regional properties, we delivered an all time record EBITDAR year in 2021 with most of our properties leading in G. G R share with their respective markets.

Speaker 3: Our regional success continues to be driven by our premium offerings as well as strength and our rated gaming spend levels, combined with our efforts to yield to our higher worth customers.

Our original success continues to be driven by our premium offerings as well as strength in our rated gaming spend levels combined with our efforts to yield to our higher worth customers. We are reopening non gaming amenities at a measured pace as demand and resources allow and our teams remain focused on labor productivity, giving us confidence.

Speaker 3: We are reopening non-gaming amenities at a measured pace as demand and resources allow, and our teams remain focused on labor productivity, giving us confidence in our ability to sustain margins above 2019 levels longer term.

And our ability to sustain margins above 2019 levels longer term.

Speaker 3: I will conclude with some comments on Macau. Despite the continued choppiness in the operating environment driven by various travel restrictions and structural shifts in the high end, MGM China reached an all-time record 14% in market share. The official launch of the Emerald Suites at MGM Cotai during the quarter enhanced their hospitality offering and is helping us also grow share. We believe MGM China remains well-positioned for the market's eventual rebound, given its strengths in premium mass.

I will conclude with some comments on Macau. Despite the continued choppiness in the operating environment driven by various travel restrictions and structural shifts in the high end MGM, China reached an all time record 14% in market share the official launch of the Emerald suites at MGM cotai during the quarter enhanced hospitality offerings and as.

Helping us also grow share.

We believe MGM, China remains well positioned for the market's eventual rebound given its strengths and premium mass.

Speaker 3: Importantly, recent constructive developments around the concession renewals reaffirm our confidence in the government's judicious and fair approach to the process.

Portly recent constructive developments around the concession renewals reaffirm our confidence in the government's judicious and fair approach to the process Macau is an important part of our future and we will continue to work with the government to ultimately get our license renewed we look forward to further promote the long term development Macau gaming industry.

Speaker 3: Macau is an important part of our future, and we will continue to work with the government to ultimately get our license renewed. We look forward to further promoting the long-term development of Macau's gaming industry and supporting the government's tourism and diversification goals for the region. As many of you know, this is Kathy Parks' last earning call with us. I cannot thank Kathy enough for all that she has done for the company and wish her all of their very best.

Putting the government's tourism and diversification goals for the region.

As many of you know this is Cathy park's last earnings call with Us I cannot thank Cathy enough for all that she has done for the company and wish you all of their very best Although I will note today, it's 69 degrees in Las Vegas, and its not so in Boston.

Speaker 3: Although I will note today, it's 69 degrees in Las Vegas, and it's not so in Boston. Jonathan, with that, it's yours. Thanks a lot, Bill.

Jonathan with that it's yours [laughter].

Thanks, a lot bill.

Speaker 4: I'd like to join Bill in deep gratitude for our entire team here at MGM. Your heroic efforts have allowed us to deliver another quarter of outstanding results, and I look forward to working with you to continue this success in 2022.

I'd like to join Bill and deep gratitude for our entire team here at M. G. M. Your heroic efforts have allowed us to deliver another quarter of outstanding results and I look forward to working with you to continue this success in 2022 now.

Speaker 4: Now let's discuss our fourth quarter results in a bit more detail. Our consolidated fourth quarter net revenues were $3.1 billion, a 13% sequential improvement over our third quarter results.

Now, let's discuss our fourth quarter results and a bit more detail our consolidated fourth quarter net revenues were $3 1 billion, a 13% sequential improvement over our third quarter results. Our net income attributable to MGM resorts was 131 million and our adjusted EBITDAR improved sequentially to <unk>.

Speaker 4: Our net income attributable to MGM Resorts was $131 million and our adjusted EBITDAR improved sequentially to $821 million led once again by our domestic operation.

821 million led once again by our domestic operations.

Speaker 4: 16 of our 17 domestic properties achieved either all-time or fourth quarter EBITDA records and 14 achieved either all-time or fourth quarter margin records.

16 of our 17 domestic properties achieved either all time or fourth quarter EBITDAR Records and 14 achieved either all time or fourth quarter margin Records. This performance reflects strong broad based demand across all segments, even into the latter part of the quarter, which is typically.

Speaker 4: This performance reflects strong, broad-based demand across all segments, even into the latter part of the quarter, which is typically our seasonal low period.

Our seasonal low period.

Speaker 4: We also demonstrated our ability to improve our operations while maintaining cost discipline against the backdrop of workforce and supply chain challenges.

We also demonstrated our ability to improve our operations, while maintaining cost discipline against the backdrop of workforce and supply chain challenges.

Our fourth quarter Las Vegas strip net revenues, which now fully include Citycenter, we're 26% above the fourth quarter of 2019 at 1.8 billion adjust.

Speaker 4: Our fourth quarter Las Vegas stripnet revenues, which now fully include city center, were 26% above the fourth quarter of 2019 at $1.8 billion.

Speaker 4: adjusted property EBITDA for the strip with $699 million, 84% above the fourth quarter of 2019.

Adjusted property EBITDAR for the strip was $699 million, 84% above the fourth quarter of 2019 hold had a positive eight and a half million dollar impact on our EBITDAR this quarter in Las Vegas, So hold adjusted strip EBITDAR was $690 million.

Speaker 4: Hold had a positive $8.5 million impact on our EBITDA this quarter in Las Vegas. So Hold adjusted strip EBITDA was $690 million.

Speaker 4: Our strip margins were 39% in the fourth quarter, a 1200 basis point improvement over the fourth quarter of 2019, and equal to our margins in the third quarter of 2021.

Our strip margins were 39% in the fourth quarter of 200 basis point improvement over the fourth quarter of 2019 and equal to our margins in the third quarter of 2021.

Speaker 4: We continue to drive healthy casino performance in the fourth quarter with strip slot handle and table games drop increasing 31% and 17% above the fourth quarter of 2019 respectively. Now that's when including Aria and excluding circus, circus Las Vegas in both periods.

We continue to drive healthy casino performance in the fourth quarter with strip slot handle and table games drop increasing 31% and 17% above the fourth quarter of 2019, respectively, now, that's when including ARIA and excluding Circus Circus Las Vegas in both periods.

Our fourth quarter Casino revenues grew 66% over the fourth quarter, 2019, or 40% when including ARIA and excluding circus in both periods.

Speaker 4: Our fourth quarter casino revenues grew 66% over the fourth quarter 2019, or 40% when including Aria and excluding circus in both periods.

Speaker 4: Notably, for the first time since the pandemic began, our rated 65 and over age demographic in Las Vegas reached its pre-pandemic levels in terms of room nights in the fourth quarter.

Notably for the first time since the pandemic began R rated 65 and over age demographic in Las Vegas reached its pre pandemic levels in terms of room nights in the fourth quarter.

Our strip hotel occupancy was 86% in the fourth quarter improving sequentially from 82% in the third quarter. This was driven by strong weekdays anchored by our best convention quarter since the pandemic began.

Speaker 4: Our strip hotel occupancy was 86% in the fourth quarter, improving sequentially from 82% in the third quarter. This was driven by strong weekdays anchored by our best convention quarters since the pandemic began, and even stronger weekends. Our ADRs in the fourth quarter were 19% above that of fourth quarter 2019, or 7% above on a same store base.

Even stronger weekends are 80 yards in the fourth quarter were 19% above that of fourth quarter, 2019, or 7% above on a same store basis.

Speaker 4: Now Bill discussed the current operating dynamics, which have been challenging, and also why we continue to be optimistic about our business beyond the first quarter. To help provide a sense of the magnitude of the impact presently, we just finished January with Las Vegas Strip occupancy at 66%.

Now Bill discuss the current operating dynamics, which had been challenging and also why we continue to be optimistic about our business beyond the first quarter to help provide a sense of the magnitude of the impact presently we just finished January with Las Vegas strip occupancy at 66%.

Speaker 4: But we expect the rest of the first quarter to improve, with February occupancy running in the mid-70s and March in the mid-80s.

But we expect the rest of the first quarter to improve with February occupancy running in the mid seventies and March in the mid eighties.

Speaker 4: February and March ADRs are pacing near 2019 levels, fueled by weekend ADRs up over 20%.

February and March 80 yards are pacing near 2019 levels fueled by weekend 80 yards up over 20%.

Speaker 4: And while we had occupancy drop last month.

And while we had occupancy drop last month January was our highest booking month since March of 2021 and it was better than any single month in 2019.

Speaker 4: January was our highest booking month since March of 2021, and it was better than any single month in 2019. These are rooms that were booked in January for the future. Yep, we all feel pretty good about the outlook here in Las Vegas.

These are rooms that were booked in January for the future Yep, we all feel pretty good about the outlook here in Las Vegas.

Speaker 4: Our fourth quarter regional net revenues were $900 million and flat versus the fourth quarter of 2019. We delivered adjusted property EBITDA of 309 million, which was 36% above 2019 levels. Combined with our Las Vegas results, our domestic businesses delivered over $1 billion to the EBITDA in the quarter.

Our fourth quarter regional net revenues were $900 million and flat versus the fourth quarter of 2019, we delivered adjusted property EBITDAR of $309 million, which was 36% above 2019 levels combined with our Las Vegas results, our domestic businesses delivered over $1 billion of EBITDAR and.

The quarter.

Speaker 4: Our fourth quarter regional margins grew 900 basis points over the fourth quarter of 2019 to 34%. Recall that our third quarter margins grew by a similar 886 basis points over the third quarter of 2019.

Our fourth quarter regional margins grew 900 basis points over the fourth quarter of 2019% to 34% recall that our third quarter margins grew by a similar 886 basis points over the third quarter of 2019.

Speaker 4: Our regional casino business remains strong despite the typical seasonality in the business during the fourth quarter. Our slots and table games volumes improved by 7% and 5% respectively over the fourth quarter in 2019. And our net theo per day for our rated customers increased 34% over the same quarter in 2019 led by our high value $400 segment.

Our regional casino business remains strong despite the typical seasonality in the business during the fourth quarter, our slots and table games volumes improved by 7% and 5% respectively over the fourth quarter in 2019, and our net Theo per day for a rated customers increased 34% over the same quarter in 2019.

Led by our high value 400 dollar segment.

Speaker 4: I'd like to make some comments about our cost structure and how it has evolved over time.

I'd like to make some comments about our cost structure and how it has evolved over time.

Speaker 4: Our Las Vegas and regional EBITDA margins have remained very strong throughout the last year. And while they benefited from pent-up consumer demand and elevated casino spend, they also evidenced the great work that our teams have put into maximizing the effectiveness of our operating model and rethinking how we run our business.

Our Las Vegas, and regional EBITDAR margins have remained very strong throughout the last year now while they benefited from pent up consumer demand and elevated casino spend they also evidenced the great work that our teams have put into maximizing the effectiveness of our operating model and rethinking how we run our business. This ranges from labor productivity to optimize.

Speaker 4: This ranges from labor productivity to optimizing F&B offerings to strategic player reinvestment.

F N b offerings to strategic player reinvestment and as we continue to staff our teams to more sustainable levels and our non gaming revenues increasingly become larger contributors to our overall business, we expect our domestic margins to stabilize still well above 2019 levels.

Speaker 4: And as we continue to staff our teams to more sustainable levels, and our non-gaming revenues increasingly become larger contributors to our overall business, we expect our domestic margins to stabilize still well above 2019 levels.

Speaker 4: Moving to BetMGM, we're currently live in 21 markets, having launched in both New York and Louisiana in January , as well as Puerto Rico today.

Moving to bet MGM. We're currently live in 21 markets, having launched in both New York and Louisiana in January as well as Puerto Rico today.

Speaker 4: The team remains busy, that's probably the understatement of the call, with expectations to go live in Illinois next month, as well as Canada later this year. Adam and Gary from VetMGM provided a business update back on January 19th, during which they announced having delivered net revenue from operations of $850 million in 2021, growing nearly five times over 2020.

The team remains busy it's probably the understatement of the call with expectations to go live in Illinois next month as well as Canada later this year, Adam and Gary from bet MGM provided a business update back on January 19th during which they announced having delivered net revenue from operations of $850 million in 2020 one.

Growing nearly five times over 'twenty 'twenty, we expect the momentum to continue into 2020 , two with bet MGM expecting to deliver net revenue from operations of over $1 3 billion.

Speaker 4: We expect the momentum to continue into 2022, with BetMGM expecting to deliver net revenue from operations of over $1.3 billion.

Speaker 4: Our 50% share of BetMGM's losses in the fourth quarter amounted to $57 million, which is reported as a part of the unconsolidated affiliates line of our adjusted EBITDA calculation. This brings our share of BetMGM's losses to $211 million for the full year 2021. And as Bill alluded to earlier, we continue to believe that BetMGM is one of the most attractive growth opportunities for our company, and one that will generate meaningful returns on our investment.

Our 50% share of bad Mgm's losses in the fourth quarter amounted to $57 million, which is reported as a part of the unconsolidated affiliates line of our adjusted EBITDAR calculation. This brings our share of bad Mgm's losses to $211 million for the full year 'twenty, one to 2021 and as bill alluded to earlier.

We continue to believe that Beth M. G. M is one of the most attractive growth opportunities for our company and one that will generate meaningful returns on our investment.

Speaker 4: Finally, in Macau, overall market-wide gross gaming revenues in the fourth quarter grew 2% sequentially from the third quarter. MGM China's net revenue grew 9% sequentially to $315 million. And adjusted property EBITDA slightly declined sequentially to $5 million, partially driven by VIP hold and higher bad debt.

Finally in Macao overall market wide gross gaming revenues in the fourth quarter grew 2% sequentially from the third quarter MGM. China's net revenue grew 9% sequentially to $315 million and adjusted property EBITDAR slightly declined sequentially to $5 million, partially driven by VIP hold in.

A higher bad debt.

Speaker 4: Travel restrictions are still the greatest bottlenecks to a more meaningful recovery in the region, but we remain encouraged by the clear signs of demand for our offerings. In fact, for the recently ended Chinese New Year holiday period, total visitor counts to our properties were up 30% over the prior year, with our mass segment showing healthy year-over-year growth and recovery.

Travel restrictions are still the greatest bottlenecks to a more meaningful recovery in the region, but we remain encouraged by the clear signs of demand for our offerings. In fact for the recently ended Chinese new year holiday period total visitor counts do our properties were up 30% over the prior year with our mass segment, showing healthy year over year growth in.

Recovery.

Speaker 4: Fourth quarter corporate expense, excluding share-based compensation, was $117 million, which included about $8 million of transaction costs.

Fourth quarter corporate expense, excluding share based compensation was $117 million, which included about $8 million of transaction costs, we incurred some additional expenses related to our loyalty program relaunch and true ups for performance related compensation and as a result, we expect that our net corp.

Speaker 4: We encourage from additional expenses related to our loyalty program relaunch and true ups for performance-related compensation. And as a result, we expect that our net corporate expense in the fourth quarter will run lower, but for the first quarter will run lower than in the fourth quarter.

<unk> expense in the fourth quarter will run lower with for the first quarter will run lower than in the fourth quarter.

Speaker 4: Now fortunately, one of the most important topics facing our company today is the allocation of our capital. And we believe that among the most productive uses of that capital is returning it to our shareholders.

Unfortunately, one of the most important topics facing our company today is the allocation of our capital and we believe that among the most productive uses of that capital is returning it to our shareholders at current trading levels. We believe there is tremendous value in the shares and we've acted on that conviction and the fourth quarter we.

Speaker 4: At current trading levels, we believe there's tremendous value in the shares and we've acted on that conviction. In the fourth quarter, we repurchased approximately 17 million shares for 727 million. And so far this quarter, we've repurchased roughly 8.5 million shares for $370 million.

Approximately 17 million shares for $727 million and so far this quarter, we've repurchased roughly $8 5 million shares for $370 million. Since we started the program last March not even one year ago, we have repurchased over 52 million shares for just over $2 1 billion.

Speaker 4: Since we started the program last March, not even one year ago, we have repurchased over 52 million shares for just over $2.1 billion. That's over 10.5% of our market cap.

That's over 10, 5% of our market cap.

Speaker 4: These repurchases have been funded in part by a series of transformational transactions announced over the last year. Transactions that improve our portfolio, simplify our structure, bolster our liquidity position, and advance our vision to be the world's premier gaming entertainment company.

These repurchases have been funded in part by a series of transformational transactions announced over the last year transactions that improve our portfolio simplify our structure bolster our liquidity position and advance our vision to be the world's Premier Gaming Entertainment company.

Speaker 4: This year we are working to bring these deals across the finish line. Our transaction with Vichy remains on track to close in the second quarter subject to regulatory approvals. We also expect to close our acquisition of the operations of the Cosmopolitan and Blasbergis in the second quarter subject to regulatory approvals.

This year, we are working to bring these deals across the finish line our transaction with Beecher remains on track to close in the second quarter subject to regulatory approvals. We also expect to close our acquisition of the operations at the Cosmopolitan of blast Vegas in the second quarter subject to regulatory approvals in December we announced our agreement to sell the operations of the <unk>.

Speaker 4: In December , we announced our agreement to sell the operations of the Mirage to HardRock for $1.075 billion, representing a 17 times multiple on its 2019 adjusted EBITDA, less rent. And we expect this transaction to close in the second half of the year.

Raj to hard rock for $1.075 billion, representing a 17 times multiple on its 2019 adjusted EBITDAR less rent and we expect this transaction to close in the second half of the year.

Speaker 4: We remain highly liquid. As of December 31, our cash position, excluding MGM China and MGP, was $4.8 billion, or $7.4 billion when adjusted for the Vichy, the Cosmopolitan in Las Vegas, and the Mirage transactions, as well as the retirement of our $1 billion senior notes coming due next month.

We remain highly liquid as of December 31st our cash position, excluding MGM, China and M. G. P was $4 8 billion or $7 4 billion when adjusted for the V. G. The cosmopolitan and blast Vegas, and the Mirage transactions as well as the retirement of our $1 billion senior notes coming due next.

A month or.

Speaker 4: Our approach to capital allocation continues to be as follows. First, we'll maintain a strong balance sheet with adequate liquidity. Second, we'll return cash to our shareholders. And then finally, when assessing potential growth opportunities, we'll invest where we have clear advantages and we'll exercise prudence in measuring prospective returns for our shareholders.

Our approach to capital allocation continues to be as follows first we will maintain a strong balance sheet with adequate liquidity second we will return cash to our shareholders and then finally when assessing potential growth opportunities, we'll invest where we have clear advantages and will exercise prudent and measuring prospective returns for our shareholders.

Speaker 4: And then before I turn it over back over to Bill, I'd just like to address my final comments to our organic growth plan, starting with our new MGM Rewards Loyalty Program.

And then before I turn it over back over to Bill I'd, just like to address my final comments to our organic growth plan, starting with our new M. G. M rewards loyalty program today in Las Vegas, we attribute over 80% of our gaming revenue to specific customers enrolled in M. G M or words, enabling the delivery of personalized service and <unk>.

Speaker 4: Today in Las Vegas, we attribute over 80% of our gaming revenue to specific customers enrolled in MGM rewards, enabling the delivery of personalized service and relevant offers.

<unk> offers but when it comes to hotel dining and entertainment spending that percentage that is attributable to specific customers is less than 40% for M. G. M. These non gaming revenues amount to approximately $5 billion per year in Las Vegas alone and I think we'd all agree that MGM has the best most diverse hotel dining and entertainment.

Speaker 4: But when it comes to hotel dining and entertainment spending, that percentage that is attributable to specific customers is less than 40%. For MGM, these non-gaming revenues amount to approximately $5 billion per year in Las Vegas alone. And I think we'd all agree that MGM has the best, most diverse hotel dining and entertainment experiences in Las Vegas. This is a huge opportunity for us.

<unk> in Las Vegas, this is a huge opportunity for us.

Speaker 4: Expanding the ways our customers earn rewards, simplifying the benefits that they receive in return provides compelling reasons for guests to share their journeys with us. As our understanding grows, it will enhance our ability to provide a more compelling, personalized experience and offers for our guests. As a result, we believe we'll drive deeper loyalty and grow our customer base over time, delivering financial gain for our shareholders.

Spanning the ways our customers earn rewards simplifying the benefits that they receive in return provides compelling reasons for guests to share their journeys with us as our understanding grows that will enhance our ability to provide a more compelling personalized experience and offers for our guests. As a result, we believe will drive deeper loyalty and grow our customer base.

Over time, delivering financial gain for our shareholders with that I'll turn it back to bill for his closing remarks, thanks, Jonathan Jonathan by the way just celebrated its first year anniversary I wonder what he's been doing.

Speaker 3: With that, I'll turn it back to Bill for his closing remarks. Thanks, Jonathan. Jonathan, by the way, just celebrated his first year's anniversary. I wonder what he's been doing. When I first spoke with all of you as the CEO of Proximid two years ago, I expressed my desire to be focused, disciplined, and transparent in how we ran this company. I believe these virtues have served us well over the last couple of years. And I believe they will continue to serve us well into the future as we look to drive long-term shareholder value.

[laughter] when I first spoke with all of you as the CEO of approximately two years ago I Express my desire to be focused disciplined and transparent in how we ran this company I believe these virtues absurdist served us well over the last couple of years and I believe they will continue to serve us well into the future as you look to drive long term shareholder value.

Speaker 3: I'd like to close by thanking again all of our employees for their service, for their commitment, and their dedication to this company. Together we've accomplished a lot in the past year and I'm excited about what we can further do and accomplish this year and beyond. With that Chad, I'll turn it back to you for questions.

I'd like to close by thanking again all of our employees.

For their service for their commitment and their dedication to this company together, we've accomplished a lot in the past year and I'm excited about what we can further do and accomplish this year and beyond with that Chad I'll turn it back to you for questions.

Speaker 1: Thank you, sir. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star.

You, Sir we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two and as a reminder, in all fairness. Please limit yourself to one question and one of them.

Speaker 1: And as a reminder, in all fairness, please limit yourself to one question and one follow-up.

Follow up.

And the first question will come from Joe Greff with J P. Morgan. Please go ahead.

Speaker 1: And the first question will come from Joe Graf with JP Morgan. Please go ahead.

Speaker 5: Hello everybody. Congratulations on the results.

Hello, everybody congratulations on the results.

Speaker 5: Going into tonight, I wanted to ask you, as you are going into the first quarter.

Thanks Jay.

[laughter] Tonight I wanted to ask you.

As you are going into our firm.

The first quarter.

Speaker 5: what sort of hotel pricing elasticity you're experiencing particularly on the weekends that you've addressed that. So I just wanted to clarify, I think Jonathan, you had a comment and I didn't capture all of what you said with regard to the revamped MGM Awards loyalty program. You said 80% of the gaming revenues come from the current loyalty program.

What sort of hotel pricing elasticity, you're experiencing particularly on the weekends and you've addressed that.

So I just wanted to clarify I think Jonathan you had a comment that I didn't capture all of what you said with regard to the revamped MGM rewards loyalty program.

You said, 80% of of the gaming revenues come from.

The current loyalty program the <unk> the.

Speaker 5: the non-gaming that's only 40%. I guess just to kind of understand if you got to parity, what would that revenue opportunity be and would that incremental revenue be at margins that would be accretive to the current blend of the...

Non gaming, it's only 40% I guess just to kind of understand if if you got to parity.

What would that revenue opportunity D and what that incremental revenue be at margins that would be accretive to the current blend of our strip EBITDA margins.

Speaker 4: Sure. You know, I was really intending to draw the distinction between the level of tracked revenue that we have through our gaming revenue as compared to non-gaming revenue. And so it's an opportunity, and that was the difference between the 80% and the 40% here in Las Vegas. And it's meant to illustrate the opportunity that we have to create a closer relationship with those guests.

Oh sure.

I was really intending to draw the distinction between.

The level of tracked revenue that we have through our gaming revenue as compared to non gaming revenue and so it's an opportunity and that was the difference between the 80% in the 40% here in Las Vegas.

And it's meant to illustrate the opportunity that we have to create a closer relationship with those guests of ours, who generate.

Speaker 4: of ours who generate non-gaming revenue for us across our hotel, restaurants, and entertainment venues.

Non gaming revenue for us across our hotel restaurants, and entertainment venues and this is a massive business for MGM resorts. It's a it's a huge opportunity for us.

Speaker 4: This is a massive business for MGM Resorts. It's a huge opportunity for us.

Speaker 4: to grow share within those customers spend areas.

To grow share within those customers spend areas.

Speaker 4: And so, you know, we'll be detailing as we go through the year with the launch and the success of the MGM Rewards program, which rewards these guests for that spend and then allows us, of course, to customize offers to them.

And so we will be detailing as we go through the year with the launch in <unk> and.

The success of the MGM rewards program, which rewards. These guests for that spend and then allows us of course to customize offers to them.

Great.

Speaker 5: Great. And then my follow-up question is related to New York. Assuming you're able to build a full-scale, you know, Empire City, what do you currently envision for that property? What would be the cap act?

And then my follow up question is related to New York assuming.

You were able to build a full scale.

Empire City.

What what do you currently envision for that property what would be the capex.

Speaker 5: How much disruption would there be as you're expanding and renovating that property?

How much.

Disruption would there be as you're expanding and renovating that property.

Speaker 3: You know, Joe, great question. It'll take some time. Obviously, we need to understand what the tax is going to be, what the licensing fee is going to be. It, you know, it will determine a great deal. I'm presuming we're fortunate enough to win a license and ultimately go forward.

Joe Great question, it'll take some time, obviously, we need to understand what the tax is going to be with a licensing fee is going to be.

You know it will determine a great deal presuming, we're fortunate enough to win a license and ultimately go forward.

Speaker 3: You know, if we do it, I would say the way it was done in National Harbor, where you have an opportunity to create great jobs, a great environment, a great property, because the tax ultimately and the fee is reasonable enough to allow us to do that.

You know if if we do it I would say the way we've done a national Harbor, where you have an opportunity to create great jobs are great and great environment, a great property.

Because the tax ultimately and the fee is reasonable enough to allow us to do that.

Speaker 3: You know, you're looking at a spend somewhere in the billion two to billion three phase one, give or take.

You know you're looking at a spend somewhere in the billion 2 billion three phase one give or take I'm. You know we have 97 acres there.

Speaker 3: You know, we have 97 acres there. We go back and forth what kind of things we might want to put there. We could see quickly in the existing environment a couple hundred tables.

We go back and forth, what kind of things we might want to put their we could see quickly in the existing environment a couple of hundred tables.

Speaker 3: We currently have 5,500 slots, which is massive. And so we reduce that to a certain degree. And then we build it out over time, clearly a need for a structured garage. But there's a much broader vision to be had longer term.

Currently at 5500 slots, which is massive.

And so we reduced that to a certain degree and then we build it out over time, clearly a need for a structured garage, but there's a much broader vision to be had longer term, but I think.

Speaker 3: But I think, and look, the opportunity, location, all of the things that would be meaningful to us in terms of a network, and ultimately Omni Channel back here, both with Ben MGM and ultimately Las Vegas, is a cornerstone to that discussion.

Look the opportunity location all of the things that would be meaningful to us in terms of the network and ultimately omnichannel back here, both with that MGM and ultimately Las Vegas.

A cornerstone to that discussion could.

Speaker 3: could be very meaningful for the company, but we've got to be given the opportunity to spend capital to make it work. And so it really hinges on that discussion almost more than anything else. But that's a starting point, I think a good way to think about it.

It could be very meaningful for the company, but we've got to be given the opportunity to spend capital to make it work and so it really hinges on that discussion almost more than anything else.

But that's a starting point I think a good way to think about it.

Great. Thank you.

Speaker 1: and the next question will be from sean kelly with bank of america please go ahead

And the next question will be from Shaun Kelley with Bank of America. Please go ahead.

Hi, Good afternoon, everyone I wanted to maybe touch on Capex, a little bit obviously I think there were some numbers given in the presentation.

Speaker 5: I wanted to maybe touch on CapEx a little bit. Obviously I think there were some numbers given in the presentation about sort of your targets for 2022. Jonathan, that looks a little bit above, I think historically, maybe it's a lot closer to, you know, 400 to 500 million for the core domestic portfolio on a maintenance basis. So could you help us elaborate on some of the spending in 2022? And then I think there was also a $2 billion number mentioned over maybe the next couple of years. So maybe you can help us think about some of the project, you know, like the project focus going forward.

<unk> about so your targets for 2022, Jonathan that looks a little bit above I think historically, maybe thought closer to 400 and 500 million for the core domestic portfolio on a maintenance basis. So could you.

Help us elaborate on some of the spending in 2022, and then I think there was also a $2 billion number mentioned over maybe the next couple of years. So can you help us think about some of the project.

Like the project focus going forward.

Sure.

Speaker 4: Sure, two reasons for the elevated number against that maintenance target or history that you described. One would be some deferred maintenance that the company experienced during 2020 when the properties were closed and many of our employees were furloughed.

Two reasons for the elevated number against that maintenance Targa.

Target or or history that you described are one would be some deferred maintenance that the company experienced during 2020 when the properties were closed in many of our employees were furloughed.

Per load.

Speaker 4: the company didn't spend much capex at all during 2020. So some of it is making up for that. We also are taking on, in a deliberate way, some hotel remodels in our system. We talked about, of course, Luxor and Bellagio last year. This year will be the Beaux-Rivage, New York, New York, and beginning on some of the rooms at the MGM Grand.

The company didn't spend much capex at all during 2020. So some of it is making up for that we also are taking on.

In a deliberate way some hotel remodels in our system, we talked about of course Luxor in <unk> last year. This year will be the bow Revives, New York, New York and beginning on some of the rooms at the MGM Grand.

Speaker 4: So those are all pretty meaningful investments and we think in every case they're going to drive nice returns and improvements in guest experience.

Those are all pretty meaningful investments and we think in every case are going to drive nice returns and improvements in guest experience.

Speaker 4: The $2 billion number that you mentioned, that's really looking out to the next several years. And I would put it largely in three categories. The first is a continued program of room renovations across the system that we've now laid out for the next seven or eight years.

The the 2 billion dollar number.

You mentioned, that's really looking out to the next several years.

And I would put it largely in three categories. The first is a continued program of room renovations across the system that we've now kind of laid out for the next seven or eight years.

Speaker 4: The second is technology investments led by Talak and his team, most of which are going to be directly experienced by our guests.

The second is technology investments led by to lock in his team most of which are going to be.

Directly experienced by our guests.

Speaker 4: And then the third, our growth capital investments within our core portfolio that we'll expect will drive a very nice return for shareholders. So those are the main buckets of that $2 billion number.

And then the third our growth capital investments within our <unk>.

Our core portfolio.

That.

We will expect will drive a very nice return for shareholders.

So those are the main buckets of that $2 billion number.

Great. Thanks, and then maybe just as my follow up on you you gave some color on I think the margin build and I think margin sustainability remains the 10000 dollar question across the space. So could you just help us drill down a little bit as you look at you were very stable quarter on quarter. I think you mentioned negative mix as some of them.

Speaker 5: Great, thanks. And then maybe just as my follow up, you gave some color on, I think, the margin build, and I think margin sustainability remains the $10,000 question across the space. So could you just help us drill down a little bit as you look into your very stable quarter on quarter, I think you mentioned negative mix of some of maybe the kind of entertainment and food and beverage amenities come back in 22. But what are you seeing on the labor front specifically, you know, I think you do have some union relationships that might actually help protect you a little bit from some broader inflation. Maybe just help us walk through a few of the pressures we think you'll be up against and what maybe some of the offsets are in 20.

The you know kind of entertainment and food and beverage amenities come back in 'twenty, two but what what are you seeing on the labor front, specifically I think you do have some union relationships that might actually help protect you a little bit from some broader inflation. So maybe just help us walk through a few of the pressures when you think you'll be up against and what maybe some of the offsets are in 2022.

Speaker 4: Okay, so on the labor side, we're experienced generally, labor inflation of 3 to 4% on an annual basis. So it is, you know, it is meaningful, but it's sustainable for us. We were also, compared to back to 2019, we were down 22% in FTEs in the fourth quarter.

So on the labor side, where experience generally labor inflation of 3% to 4% on an annual basis. So it is.

No it is meaningful but.

But it's sustainable for us.

We were also compared to back to 2019, we were down 22% and ftes in the fourth quarter.

Speaker 4: It's a little bit better than the third quarter where we were down 25%.

It's a little bit better than the third quarter, where we were down 25%.

Speaker 4: And we believe with the learnings that we've put in place the actions that we took on the operating model a couple years ago That ultimately will stabilize a level of FTS 15% below 2019 levels

And we believe with the learnings that we've put in place the actions that we took on the operating model of a couple of years ago that ultimately will stabilize at a level of ftes.

15% below 2019 levels.

Speaker 4: So that's some of the build that I talked about with bringing employees back. But that has an offset, which is, you know, there are some things for sale that we don't have open right now that we'll be able to open when we bring employees back.

So that's some of the bill that I talked about with bringing employees back but that has an offset which is there are some some things for sale that we don't have open right now that we'll be able to open them when we bring employees back.

Speaker 4: And the final thing I guess add in terms of the margin structure is there's there's really towards two sources of these 1200 basis point thousand basis point margin increases that we've had one is the cost reductions the improvements and efficiency that we've done The four hundred and fifty million dollars of cost savings. The second is a mix of customers

And then the final thing I guess add in terms of the margin structure is there there is really towards two sources of these 200 basis point 1000 basis point margin increases that we've had one is the cost reduction the improvements in efficiency that we've done for.

$450 million of cost savings the second is a mix of customers.

Speaker 4: oriented more towards casino over the past six months, which has been accreted to margins. And we believe that as that returns to a more normalized mix of business, that will have a dilutive effect on margins, but overall will improve EBITDA for the company.

Oh oriented more towards casino over the past six months, which has been accretive to margins.

And we believe that as that returns to a more normalized mix of business that.

That will have a dilutive effect on margins, but overall will improve EBITDAR for the company.

Thank you very much.

The next question will be from David Katz from Jefferies. Please go ahead.

Speaker 1: The next question will be from David Katz from Jefferies. Please go ahead.

Afternoon, everyone. Thanks for taking my questions I wanted to follow up on that just a little bit.

Speaker 4: Afternoon, everyone. Thanks for taking my questions. I wanted to follow up on that just a little bit because you know we we often engage in discussions, you know that compare your Vegas margins, you know with other operators etc and

Cause you know, we we often engage in discussions that compare your Vegas margins, you know with other operators et cetera.

Speaker 4: Fairly, it's different for a number of reasons. What I'd love to do is just get a sense for what the inherent pressures are. Jonathan, you talked about some of the labor issues and some of the other costs that are moving because of the current circumstance, but does the size of your operating platform...

You know fairly it's different for a number of reasons and.

No I I would I'd love to do is just get a sense for.

You know what the inherent pressures are Johnny.

Jonathan you talked about some of the labor issues in some of the other costs that are now moving because of the current circumstance, but you know does the size of your operating platform.

Yeah.

Speaker 4: Where does it help? Where does it weigh on your ultimate landing spot for margins in the next couple of years?

Where does it help where does it weigh on your ultimate landing spot for margins next couple of years.

Well it is.

Speaker 3: Well, this is Bill. In the context of higher end, higher volume business, while there's a ton of cash to be made potentially with high end gaming customers, they come with some margin. They come with G5s and other things tied to that activity case.

Bill.

In the context of higher higher and higher volume business. While there is a ton of cash to be made potentially with high end gaming customers. They come with some margin that come with <unk> and other things that are tied to that activity case, and so we have more than all in that category and so that drives proportionately. When you think about entertainment and you think.

Speaker 3: So we have more than all in that category, and so that drives proportionally. When you think about entertainment, and you think about Bruno Mars, and you think about Lady Gaga, they're taking large chunks of the revenue out of the building right away. And so our entertainment platforms that scale tend to add to margin differentiators from some of the others.

Bruno Mars and you think about Lady Gaga they're.

They're taking large chunks of the revenue out of the building right away and so you know our entertainment platforms at scale tend to add to margin differentiators from some of the others.

Speaker 3: And generally speaking, particularly we love to think about ARIA, you think about the matching, you think about what we're doing here as a percentage of our overall business here being Bellagio, excuse me. You know, luxury comes with some additional expense and additional service.

And and there's generally speaking, particularly when we think about <unk> you think about the match and you think about what we're doing here as a percentage of our overall business here being velocity or excuse me.

Luxury comes with some additional expense and additional service can we sustain 200 basis point margin increase no, but we've said before that we're looking at four five or 600 basis points as a real place and we believe that to be the case going forward and so you know once again, a COVID-19 and all.

Speaker 3: Can we sustain 1200 basis point margin increase? No, but we've said before that we're looking at four, five, or 600 basis points as a real place.

Speaker 3: And we believe that to be the case going forward. And so, you know, once again, COVID and Omnicron during January has clouded this discussion.

<unk> during January has clouded this discussion, but as we come out of it those 22% FTE reductions are very real.

Speaker 3: But as we come out of it, those 22% FTE reductions are very real. Those positions are...

Most physicians are gone.

Speaker 3: And so it will be to us from where we were and where we started very creative. And David, what I would add this, Corey, like type properties, you know, Bellagio versus a win or New York, New York versus a legacy property of a competitor. Our margins are equal, not better.

And so it will be two loss from where we were and where we started very accretive and David I would add this is corey.

<unk> type properties blog Hill versus a win or in New York, New York versus a legacy property of our competitor our margins are equal if not better.

Speaker 4: Understood and as my follow-up I may you know data saw a little bit, but I recall the NBA all-star game You know being in Las Vegas a number of years ago Oh and and it and it not yeah, and I you know the outcomes You know not being particularly great, but but you know the sporting events that you're hosting these days You know seemingly are great

Understood and as my follow up I May you know data saw a little bit, but I recall the NBA All star game, you know being in Las Vegas, a number of years ago and Anna.

Yeah, and I you know the outcomes, you know not being particularly great, but but you know the sporting events to your hosting these days seemingly.

Our great.

Speaker 4: And, you know, is it that you're better at managing those? Is just the, you know, there's some relationship that's improved there. You know, why are these great? And I recall that one being particularly not great.

And you know is.

Is it is it that you're better at managing those is just the you know there are some relationship that's improve their you know why are they use grades and I am and I recall that one being particularly not great.

Okay.

Speaker 3: Okay, you know, remembering that event, because we hosted part of it, I was done at Mandalay at the time. You know, a lot of Southern California showed up with that crowd. It was an awkward time as I recall. And so, no, it was not a stoic event for the community or for the properties. It just wasn't. You know, if you look at the Raiders, though, as a simple example, you remember what happened there. Half of their seat licenses went to people out of town.

Remembering that in fact, because we hosted part of it I was down at Mandalay at the time.

A lot of southern California showed up with that crowd. It was an awkward time, if I recall and so no. It was not a historic event for the community or for the properties that just wasn't.

If you look at the rain or snow as a simple example, if you remember what happened there half of their seat licenses went to people out of town the.

Speaker 3: The folks in town are now selling those seats, by the way, to other businesses. So the Raiders have talked about 60, these are their numbers, not ours, 68% of those seats on a game day are out of towners. Big pickup in middle school.

The folks in town are now selling those sheet those seats by the way to other visits so the raiders have talked about 60, I know their numbers not ours, 68% of our seats on a game day or not have counters.

Big pickup in millennials.

Speaker 3: And so, you know, between the activity case around the Golden Knights, around the Raiders, around a lot of the college activity that travels with big time fan base.

And so.

Between the active and the case around the Golden Knights around the Raiders around a lot of the college activity that travels with a big time fan base, we have gotten their head around it I think we're doing a much we the community not just our company are doing a much better job around it and like anything we learned a lot from what to do and what not to do during that event and we have become.

Speaker 3: We have gotten our head around it. I think we're doing a much, we the community, not just our company, are doing a much better job around it. We didn't like anything. We learned a lot from what to do and what not to do during that event.

Speaker 3: And we have become without a doubt and we're talking about NC2A regional finals. We're talking about the Final Four someday We got the Super Bowl here in 24.

Without a doubt and we're talking about and see to a regional finals were talking about the final four someday, we got the Super Bowl here in 'twenty four mm arguably we'd become Americas, it's not part of the world's most popular sports destination because it just isn't a three hour game its a three day event.

Speaker 3: Arguably, we've become America's, if not part of the world's most popular sports destination.

Speaker 3: Because it just isn't a three hour game, it's a three day event.

Speaker 3: And so we're enjoying that, obviously, particularly with the south end strip and the Legion, starting with T-Mobile onto a Legion, all of that is all us. And so we are sandwiched right in the middle of some really exciting stuff.

And so we're enjoying that obviously, particularly with the south and stripping allegiant starting with T mobile onto Allegiant all of that is all us and so we're sandwiched right in the middle of some really exciting stuff.

No doubt Ah congrats on the quarter and thank you. Thank you.

Speaker 4: no doubt congrats on the quarter and thank you

Speaker 1: The next question will come from Carlos Santorelli with Deutsche Bank. Please go ahead.

The next question will come from Carlo Santarelli with Deutsche Bank. Please go ahead.

Speaker 5: Hey guys, thank you very much for taking my question. Jonathan, you touched on this a little bit as you talked about kind of the transition into more entertainment. And Bill, obviously, you just referenced it as well, but entertainment and F&B, and some of those other non-gaming revenues that come back. When you look out towards the back half of this year, obviously, you guys will be facing some historic second half gaming comparisons.

Hey, guys. Thank you very much for taking my question.

Can you you touched on this a little bit as we've talked about kind of the transition into more entertainment and Bill. Obviously, you you just referenced that as well, but entertainment in F&B and some of those other non gaming revenues that come back when you look out towards the back half of this year. Obviously, you guys will be will be facing some.

Second half of the evening comparison.

Speaker 5: As you think about that transition and some of the margin degradation, do you feel like the comment you made earlier about over time it will be more EBITDA, but at a lower margin, could that hold true in the second half or do you think that will take time to build with time.

As you think about that transition and and some of the <unk>.

Margin degradation do you feel like the comment you made earlier about you know over time, it will be more EBITDAR, but at a lower margin could that hold true in the second half or do you think that will take time to heal.

Speaker 3: I kick this off and turn it to John . A couple of broad thoughts.

I'll kick this off and turn it to John a couple of broad thoughts.

Speaker 3: Clearly, even in the fourth quarter and third quarter last year, convention business did not return to normal, corporate business did not return to normal. And we have huge margin, particularly in catering and banquets in that business.

Yeah, clearly even in the fourth quarter and third quarter last year Convention business did not return to normal corporate business had not returned to normal and we have huge margin, particularly in the catering and banquet and that business. We had no appreciable international plant to speak of.

Speaker 3: We had no peaceful international play to speak of Almost nothing with the exception of we had some Europe play But Asia was a non event and just general tourism that comes internationally And I still believe there's a segment of the business. I had dinner with a gentleman last night hadn't been here in two years

Almost nothing with the exception of we had some Europe play, but Asia was a non event and just general tourism that comes internationally and then I still believe there's a segment of the business I had dinner with a gentleman last night hadn't been here in two years Walton Guy loves Las Vegas, just was afraid to come back. So I think theres a segment of the market.

Speaker 3: wealthy guy, loves Las Vegas, just was afraid to come back.

Speaker 3: So I think there's a segment of the market that has real disposable to spend that we have not yet seen to return. And so for those 3 broader reasons, I remain optimistic. You know, we've set a pretty high bar, I get the general question. Yeah, I would just add that it's important to note that in the third and fourth quarter, we're still running.

It has real disposable spend that we have not yet seen to return and so for those three broader reasons I remain optimistic.

We purchased at a pretty high bar I guess the general question.

I'd just add that it's important to note that in the third and fourth quarter, we're still running seven to 10 points lower than our than than normal in occupancy. So this this business. We're talking about this this gentleman Bill mentioned the group business. This is additive largely to the.

Speaker 4: seven to ten points lower than normal in occupation.

Speaker 4: So this business we're talking about, this gentleman Bill mentioned, the group business, this is additive largely to the

Speaker 4: to the current mix of business that we've had.

To the current mix of business that we've had and so.

Speaker 4: And so that's another reason why we believe that we can continue to grow the earnings of the business, although the mix will be different as these customers come back. And what I would add, Karlo, the strength of the casino segment, we don't see it slowing down, including the fact that internationals should start returning here.

That's another reason why we believe that we can continue to grow the earnings of the business, although the mix will be different as this as these customers come back and what I would add Carlo the strength of the casino segment, we don't see it slowing down including the fact that international should start returning here.

Speaker 6: beginning first, end of first quarter, second, hopefully second quarter. And the business we would displace is probably the lower end leisure package business with that additional business.

Beginning in the first quarter second hopefully second quarter.

And will the business, we would displace as probably the lower end leisure package business with that additional business.

Right that makes sense. Thank you that's great and then I know you guys. Obviously, you just talked about January being a tremendous booking months as you think about where we sit today with the group outlook and maybe some of the stuff that was choppy in the first quarter.

Speaker 5: Right, that makes sense. Thank you. That's great. And then I know you guys obviously just talked about January being a tremendous booking month. As you think about where we sit today with the group outlook and maybe some of the stuff that was choppy in the first quarter.

Speaker 5: I'm presuming a good chunk of that may be shifted in the back half or is sitting there, you know, waiting for first quarter of next year. Anything you guys could provide about the group pacing for, you know, second half of this year in 2023? I'd make a broad comment. Corey falls as much closer, but look.

I'm presuming a good chunk of that maybe shifted in the back half or is sitting there waiting for first quarter of next year. I mean anything you guys could provide about the group pacing for second half of this year in 2023.

Make a broad comment Cory false is much closer.

Speaker 3: We probably lost about 150,000 room nights this quarter in that space. Most of them tried to rebook or have rebooked. And when I say try, remember we've been at this two years in terms of COVID. And so when I look at next October , there's not a lot of space left at the end in some respect.

We probably lost about 150000 room nights this quarter in that space.

Most of them tried to rebook or haven't been booked and when I say try and remember we've been at this two years in terms of Covid and so when I look at next October there's not a lot of space left at the end in some respects.

Speaker 3: My general view is we will come a long way back by 4th quarter and we'll really begin to normalize by end of 23. I think the real way to think about this. By the end of the back after 23, we'll be back to full normal. And we've got some things are creative to us cancellation fees that end up on the bottom line that are highly margin, you know, 100% margin to that. And if we can turn around and refill it with leisure, that's helpful.

My General view is we will come a long way back by fourth quarter and will really begin to normalize by end of 'twenty three I think the real way to think about this by the end of the back half of 'twenty three we will be back to full normal and we've got some things that are accretive to us from a cancellation fees and end up on the bottom line that are highly margin.

Akshay margin to that.

We can turn around and resell it with leisure and Thats helpful. So leisure demand picks back up particularly in the second quarter.

Speaker 3: So leisure demand picks back up, particularly in this second quarter. I think there's some real upside to all of that.

There's some real upside to all of that.

Super Thank you guys.

The next question will be from Chad Beynon with Macquarie. Please go ahead.

Speaker 1: The next question will be from Chad Banan with Macquarie. Please go ahead.

Hi, good afternoon, Thanks for taking my question.

Speaker 4: Hi, good afternoon. Thanks for taking my question. I wanted to ask about Macau and just take your temperature in terms of what the market is thinking about maybe timing of a recovery or at least some green shoots.

Wanted to ask about Macau and just take your temperature in terms of what the market is thinking about maybe timing of a recovery or at least some green shoots you know given that we've seen some Chinese new year numbers and it's certainly a fluid situation and then related to that could you just kind of opine on the changes with the junkets and VIP rooms.

Speaker 3: Given that we've seen some Chinese New Year numbers and it's certainly a fluid situation. And then related to that, could you just kind of opine on the changes with junkets and VIP rooms, how you're positioned to transition this business and keep it in-house? Thanks. Let me maybe try to – I know Hubert's on the call with us and he stayed up late, so let me give him his moment of opportunity here. Hubert, if you could help us.

You are positioned to transition this business and keep it in house.

Let me maybe trying to I know you are but it's on the call with us and he stayed up late so let me give him his moment of opportunity here.

If you could help us.

Yeah.

Speaker 7: Yeah, so thanks, Chair for the question. In terms of timing of the recovery, I think that generally speaking, we have seen the recovery in play in the past year. If you look at 2021, the number was higher than 2020. But overall speaking, it's driven by the, obviously by the mass segment.

Thanks, Chad a question in terms of.

Pardon me help the recovery I think that generally speaking we have seen the recovery in play in the past year. If you look at 2021 and the number was higher than 2020, but overall speaking and it's driven by obviously by the mass segments.

Speaker 7: You mentioned Chinese New Year. Actually, we're pretty satisfied with the Chinese New Year performance, particularly on the math side. Take MGN for example, I think that we have reached 85% of the pre-pandemic level in terms of math volume if we measure that by table drop. Sh pause Mu An Academics

You mentioned changes you actually were pretty satisfied with the Chinese new year performance, particularly on the mass side will take MGM. For example, I think that we have reached 85% of the pre pandemic level in terms of mass volume, if we measure that by table drop.

Speaker 7: So that's encouraging. But overall speaking, in China, which is basically vast majority of our customers, where they come from, their prevention of COVID policy is very different from the ones you see in US. So they call it dynamic zero case.

So that's encouraging.

Overall speaking in China.

Which is based.

Basically the vast majority of our customers where they come from.

Policy prevention of Covid policy is very different from the ones you see E U S. So they call it dynamic zero case.

Speaker 7: So as soon as there's a case popping up somewhere in China, so there are strict travel restrictions in place for that area. But now in China, it's getting more and more precise. They can really do a precision, precise travel restriction target to certain areas.

So that's why there is a case popping up somewhere in China. So there are.

Strict travel restrictions in place for that area, but now in China, it's getting more and more precise they can't really do.

A precision.

Travel restriction pockets to certain areas.

Speaker 7: But the insight into Macau is that these areas travelers won't be allowed to come to Macau or they have to go through quarantine.

The impact into Macau is that these areas are travelers won't be allowed to Thomson from Macau or they'd have to go up in quality and in the past you know we have seen that happening almost every quarter.

Speaker 7: And in the past year, we have seen that happening almost every quarter, as close as to feeder markets like Shenzhen or even Zhuhai, and sometimes in northern areas. So I think that these things will happen in 2022 this year. Coupled with that is also the MIT test.

As close as to feed a market like Sunshine.

Shenzhen or eventual high and sometimes in Malden.

Maldon areas. So I still believe that these things will happen.

In 2022, this year and coupled with that is also the <unk> test.

Speaker 7: So if there are cases in China, typically these regions will require 24 hours test results to be presented when they enter Macau. So it's an inconvenience to these travelers. So in terms of broad recovery, we really need to look at all these travel policies, restrictions, when that's going to be eventually lifted.

No.

If there are cases.

In China, particularly the regions will require for 24 hours and all our customers.

Customers about to be presented in one day and from a cost. So it's a it's an inconvenience to these travelers. So in terms of broad recovery, we really need to look at all of these.

Travel policy restrictions when that kind of going to be.

Eventually the lift kit, so I think that ties to an overhaul of the national policy and also the vaccinate vaccination rates.

Speaker 7: So I think that ties to overall the national policy and also the vaccination rate.

Speaker 7: But I'm pretty confident that 2022 will be a better year than 2021, driven again by mass, particularly the high end of the mass.

But I'm pretty confident that 2022.

Will it be a better year than 2021.

Again biomass, particularly at the high end of the math.

Speaker 7: question upon the last point is that you asked about the conversion between what's happening in the jumping world. So by now I think that all the jumping operators in the traditional dance have basically seized operation in Macau. So the players

On the last point that you asked about the conversion of the two.

And what's happening in the junket world.

By now I think that Oh E G.

Operators in the traditional can have.

Basically ceased operation Hema Paul so the.

Players.

Speaker 7: or the agents working for the previous junket operators are trying to find a place to settle down. So it's still quite dynamic in the marketplace as far as the conversion of the former junket players to in-house players and to some extent to premium master players as well.

Most agents working for the previous junket operators are trying to find place and that's been settled down so it's still quite dynamic in the marketplace as far as the conversion of the <unk>.

Wallenberg junket players to impulse players and to some extent to premium mass players as well.

Speaker 7: So what we are working on is, first of all, focusing on masks. I think that's where the future resides. And second is to capture as much as much.

<unk>.

What we are working on is first of all focusing on that so I think that's where the future of ribeye and second is to capture as much as as much.

Speaker 7: conversion from junket to in-house to mass as possible.

Conversion from junket to Ehealth to mass as possible.

Speaker 7: And on that note, I think that we're also looking at reallocating the resources, particularly the table units, to support the mass growth eventually. So we are going to reallocate more tables from VIP to mass in the coming quarter.

On that note I think that we're also looking at reallocating the resources, particularly the table units to support the basketball.

Eventually we are going to reallocate.

More tables.

Q2 from VIP to mass in the coming quarters.

Yeah.

Speaker 4: So, Chad, does that answer your question? Yes, thank you very much Hubert, really appreciate it.

So does that answer your question, yes. Thank you very much you weren't really appreciate it.

Thank you.

Speaker 1: And the next question will be from Dan Pollitzer with Wells Fargo. Please go ahead.

And the next question will be from Dan Pulitzer with Wells Fargo. Please go ahead.

Hey, good afternoon, everyone and thanks for taking my questions I wanted to add on the capital allocation share buyback you guys have been pretty active there.

Speaker 7: Hey, good afternoon, everyone, and thanks for taking my questions. So when they hit on the capital allocation share buyback, you guys have been pretty active there.

Speaker 7: I think going back 700 million or so the past couple quarters.

I think buying back $700 million out of the past couple of quarters and three 370, I think you said for the first quarter. So I mean is that is this kind of 700 million level, a reasonable expectation to have on a go forward basis. Given your I think I have maybe 900 million last or how should we think about this going forward.

Speaker 7: And you know, 370 I think you said for the first quarter. So I mean, is that is this kind of 700 million level, a reasonable

Speaker 7: expectation to have on a go-forward basis given you know you're I think have maybe 900 million left or how should we think about this going forward as you look to return capital to shareholders.

What's the return capital to shareholders.

Speaker 4: Well, you know, we do like to be consistent at the same time we are able to take advantage of opportunities.

Well.

We do like to be consistent at the same time.

We are able to take advantage of opportunities.

Speaker 4: of softness in the shares and that was one of the things we were able to do during the fourth quarter. Particularly in December , as I recall, we were able to be aggressive and we thought that was the right thing to do given our view of the value of the company.

Softness in the shares and that was one of the things we were able to do during the fourth quarter.

Particularly in December as I recall.

We were able to be aggressive and we thought that was the right thing to do given our view of the value of the company. So I would suggest.

Speaker 4: So I would suggest that the fourth quarter was certainly, it was the highest quarter I think we've had in several years, but it was merited by the value that was in the share.

Just that the that the fourth quarter was certainly it was the highest quarter I think we've had in several years, but it was merited by the value that was in the shares.

Speaker 4: And so going forward, we'll be programmatic about this, and we continue to think it's a good use of capital. I wouldn't commit, though, to any specific dollar amount simply because it is driven in part by the trading value of the stock.

And so going forward will be programmatic about this and we continue to think it's a good use of capital I wouldn't commit to any specific dollar amount simply because it is driven in part by the by the trading value of the stock.

Speaker 4: Got it. And then could you just remind us when you'll be a full cash taxpayer? We'll be a full cash taxpayer in 2025.

Got it and then could you just.

Remind us when you'll be a full cash taxpayer.

We'll be a full cash taxpayer in 2025.

Got it thanks, so much alright, thanks, Dan.

Speaker 1: And the next question will be from Thomas Allen from Morgan Stanley . Please go ahead.

And the next question will be from Thomas Allen from Morgan Stanley . Please go ahead.

Speaker 8: Hey, thank you. So you guys had success integrating MLife with BETT MGM in the past. So can you just elaborate on the new BETT MGM rewards program, what's changed there and what you see as a big opportunity? Thank you.

Hi, Thank you I'm sure.

So you guys have had success integrating M life with better them Jim in the past. So can you just elaborate on that.

The new bet MGM rewards program, you know what what's changed there and what would you say is a big opportunity. Thank you.

Speaker 3: Thomas, thanks for the question. I think the key as it relates to BETT MGM is just further integration.

Thomas Thanks for the question I think the key as it relates to bet MGM is just further integration.

Speaker 3: Frankly, it's a little clunky. It needs to be fully integrated where it's a smooth transition in transaction for a customer.

Frankly, it's a little clunky it needs to be fully integrated where it's a smooth transition and transaction for a customer to take gaming activity on pet M. G M get recognized scant reward and get onto their phone some in some way shape or form.

Speaker 3: to take gaming activity on BetMGM, get recognized, get rewarded, and get onto their phone in some way, shape, or form an opportunity to take advantage of something on a brick and mortar property. It's a transition, it's a two-step process that we want to see go away. The more broad change though with MGM Rewards is recognizing retail spend and making it more robust.

An opportunity to take advantage of something on a on a brick and mortar property.

With the transition as a two step process that we want to see go away, but more broad change, though with MGM rewards is.

Recognizing retail spend and making it more robust.

Speaker 3: recognizing people for that. We do collectively as an industry and as a business, I think particularly as a company, an amazing job individualized with personalized guest service recognizing high-end. We're trying to extend that down the tier if you will to the next big tranche of people in the millions at this point.

Recognizing people for that we do collectively as an industry and as a business I think particularly as a company an amazing job individualized personalized guest service recognizing high end.

We're trying to extend that down to tier if you will to the next big tranche of people in the millions at this point, who I think once properly recognized and understood the value of all of the things we have to offer whether it's Las Vegas for some of our regional destinations are we're gonna be I think we're going to be highly rewarded for it.

Speaker 3: who I think once properly recognized and understood the value of all of the things we have to offer, whether it's Las Vegas or some of our regional destinations, I think we're going to be highly rewarded for it. But it's so that the reformat of MGM rewards in terms of better MGM is really more about the technology platform and getting the linkage pure and simple.

But it's done.

The lead format of MGM rewards in terms of that MGM is really more about the technology platform and getting the linkage pure and simple the rewards program itself is about driving non retail play.

Speaker 3: The rewards program itself is about driving non-retail play.

Our expense.

Very clear thank you.

Speaker 8: Very clear, thank you. And then, just following up on an earlier question about mix, I remember in 2019, you had about 21% group mix. Can you kind of talk about the split between FIT, casino and group today, and what do you think the long term will look like? Thank you.

Then just following up on an earlier question about mixed I remember in 2019, you're at about 21% group mix can you guys talk about you know the split between F. I T K.

Casino and group today and like what do you think kind of the long term will look like thank you.

Alright.

Sure Thomas Thanks.

Speaker 6: Sure, Thomas, thanks. Yeah, the group mix, we've never given a, on the convention side, we were about 13% in the fourth quarter.

The group mix, we've never given the you know on the convention side, we're about 13% in the fourth quarter.

Speaker 6: And that's not bad considering everything. Look, in general, I think we'd like our convention mix back to where it was in 19 slash 20, to see our casino increase. And we're seeing some pretty good percentage increases by about nine to 10%, that'd be great. We'd also like to see some shift in transplant, which we've been able to see during this period. And probably taking away a little bit from the leisure package, that would be our end goal.

And that's not bad considering everything look in general I think we'd like our convention mix back to where it was in 19 slashed 'twenty.

With to see our casino increase and we're seeing some pretty good percentage increases by about 9%, 10% that'd be great. We'd also like to see some shift in transient, which we've been able to see during this period and probably taking away a little bit from the leisure package that would be our end goal.

Perfect. Thank you.

The next question is from John decree with the C. B R. E. Please go ahead.

Speaker 1: The next question is from John Decree with CBRE. Please go ahead.

Hi, everyone. Thanks for taking my question. So a follow up to Thomas' question on a bet MGM in the rewards program.

Speaker 9: Bill, a follow-up to Thomas' question on BETT MGM and the rewards program. Obviously a significant number of rewards customers acquired through BETT MGM this year. I'm curious if you're...

Obviously, a significant number of rewards customers acquired through that M. G. M D.

This year I'm curious, if you're seeing any meaningful cross sell to your bricks and mortar operation yet or it sounded like maybe with our rewards program revamp that might be more on the comm, but just curious if you have any anecdotes or data that you could share with us so far yeah look a little bit more on the come particularly here in Las Vegas because of the disc.

Speaker 3: Yeah, look, a little bit more on the come, particularly here in Las Vegas, because of the distance and the destination. Having said that, remember the best omnichannel example we have is Michigan. And we have seen a lot of cross-play. And what has been proven, and this shouldn't be a surprise, but it's proven out to be the case, is a omnichannel customer literally is worth two, two and a half times a regular customer.

Since in the destination, having said that remember the best Omnichannel example, we have as Michigan.

And we have seen a lot of cross play.

And what has been proven and this shouldn't be surprised but it's proven out to be the case is a omnichannel customer literally is worth two two and a half times a regular customer.

Speaker 3: So they do take advantage of online brick and mortar and some of the opportunities that it presents back and forth. We obviously have database shares, we go after customers. It's not a pure link with BetMGM and what was MLife.

So they do take advantage of online brick and mortar and some of the opportunities it presents back and forth.

We've obviously have database shares we go after customers.

It's not a pure link with bet MGM and what wasn't M life.

Speaker 3: where, and so some of this is just direct mail motivated on that database. Over time, that's exactly where we'll get to. And so I think you'll see a whole lot. The essence of it is we're just getting going and I think there's real opportunity here.

And so some of this is just direct mail motivated on that database over time, that's exactly what we will get to and so I think you'll see a whole lot.

The essence, even as we're just getting going and I think there's real opportunity here.

Speaker 9: Well, that's good clarity. And if I could ask one more on the promotional and marketing environment, there's obviously a lot of spend going on.

So that's good clarity and if I could ask.

Ask one more on the promotional and marketing environment. There's obviously a lot of spend going on as it relates to sports betting in digital gaming, but you know curious if that's had any impact on the marketing environment and promotional environment.

Speaker 9: sports betting and digital gaming, but curious if that's had any impact on the marketing environment or promotional environment at your regional or Las Vegas operations. There was a little bit of a demand dip because of...

Regional or Las Vegas operations, there was a little bit of a demand dip because of omicron curious if you've seen any changes in behavior that you look at the core I can answer this but I'll tell you on the bet MGM side God I hope it doesn't transition over.

Speaker 3: Look, Cory can answer this, but I'll tell you in the Ben MGM, so I got my hope it doesn't transition over. It's an openly aggressive market. We all know it. I think we've been one of the more disciplined. I mean, you heard the number we lost about 52 or 4 million in cash in the fourth quarter of Ben MGM. I know what we spend versus the competitive set. It's about, they outspent us about two to one, yet we maintain the market share that we have. So I think it's compelling.

It's an overly aggressive market, we all know and I think we've been one of the more disciplined I mean, you heard the number we lost about 52 or $4 million in cash in the fourth quarter and bet MGM I know, what we spend versus the competitive set it's about they I've spent it's about two to one yet we maintain the market share that we have so I think it's compelling.

So the team does a really good job with that but it has not nor will it impact its way into the regionals go ahead, yeah, and with regards to the properties, especially in the regionals when we shut down and that was one of our saving opportunities was to readjust that investment into those customers and we've been able to maintain that on the slowdown you may have seen.

Speaker 6: So the team does a really good job with that, but it has not nor will it impact its way into regionals and currently and with regards to the properties, especially in the regionals when we shut down, that was 1 of our saving opportunities was to readjust that investment.

Speaker 6: into those customers and we've been able to maintain that. The slowdown you may have seen in some of the markets in January .

And some of the markets in January especially.

Speaker 6: especially on the East Coast, would have been related to Omicron and the weather.

Especially on the east coast would've been related to one micron and the weather.

Yeah.

Great. Thanks, everyone congratulations on a.

Thanks, Jim.

Yeah.

Thank you and our last question for today will come from Stephen Grambling with Goldman Sachs. Please go ahead.

Speaker 1: you and our last question for today will come from steven grappling with goldman sacks please go

Hey, Thanks for sneaking me in two follow up questions actually first on that MGM could you maybe disclose how many monthly active users are on the app to end the year.

Speaker 3: Hey, thanks for sneaking me in. Two follow up questions actually. First on BetMGM, could you maybe disclose how many monthly active users are on the app to end the year?

Speaker 4: No. It's well over a million in the database at this point, but I'd rather keep that close for now. I think as you probably know, they're having an investor day in May, and I think at that time the team will be sharing more detail.

No.

Well, it's well over a million.

In the database at this point.

But I'd rather keep that close for now I think there as you probably know they're having an investor day in May and I think at that time that the team will be sharing more detail.

Speaker 3: Awesome, thanks. I had to sneak it in. And then the second one's another modeling follow-up. Anyway, you can share what your same property margins were in Vegas and in the regions in 2019 so we can kind of compare and contrast on apples and apples base.

Awesome. Thanks, I had to sneak it in and then the second one is another modeling follow up any way you can share what your same property margins, we're in Vegas and in the regions. In 2019. So we can kind of compare and contrast on apples to apples basis.

Yeah.

Speaker 4: Yeah, those margins were in the kind of high 20s, around 28 or so, on a kind of a like-for-like basis in 2019.

Yeah, those those margins were in that kind of high twenties around 28.

So on a kind of a like for like basis in 2019.

Awesome that's it for me thanks, so much.

Speaker 1: Ladies and gentlemen, this concludes our question and answer session. I would like to turn the conference back over to Bill Hornbuckle for any closing remarks.

Latest ladies and gentlemen, this concludes our question and answer session I would like to turn the conference back over to Bill Hornbuckle for any closing remarks.

Speaker 3: Thank you, Chad. Again, I'll be quick. I know it's late back east, particularly for obviously for us. It's been a tremendous year. We couldn't be more excited. I can't again thank our team enough.

Thank you Chad again.

I'll be quick I know, what you laid back east, particularly look for obviously for US it's been a tremendous year, we couldnt be more excited I can't again, thank our team enough I think we've done a very good job by shareholders. We've returned a substantive amount of the company over 10% back to them, we've got an amazing fortress balance sheet.

Speaker 3: I think we've done a very good job by shareholders. We've returned a substantive amount of the company, over 10% back to them. We've got an amazing fortress balance sheet that presents all kinds of opportunities for diversification, whether it's Japan, New York, or ultimately into digital, both domestically and beyond. You probably know we're stretching Bed-am Gym into Canada in April . And so we're excited by its growth and other possibilities that may present themselves

<unk> all kinds of opportunities for diversification, whether it's Japan, New York or ultimately into digital.

Domestically and beyond you're probably now we're stretching bet MGM into Canada in April .

And so we're excited by its growth and other possibilities that may present themselves.

Speaker 3: And so we're excited to get refocused now on returning some of our properties and some of our growth programs and our remodel programs back to where we'd like them to be and beyond.

And so we're excited to get refocused now on returning some of our properties are in some of our growth programs and our remodel programs back to where we'd like them to be and beyond and again, we're just getting rolling because if you think about 2020 was sports obviously, we had COVID-19 , we're just getting rolling with that activity case at full steam.

Speaker 3: And again, we're just getting rolling because if you think about 2020 with sports, obviously we had COVID. We're just getting rolling with that activity case at full steam. And so I'm excited by the balance of this year there. Again, because of COVID, the entertainment program, and it will be robust here. Many tours did not go out and they decided to stay in Las Vegas and do residencies.

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And so I'm excited by the balance of this year, there again because of Covid. The entertainment programming will be robust here. Many tourists did not go out and they decided to stay in Las Vegas, and do residencies and it'll be accretive to us throughout the course of this year. So again appreciate your involvement appreciate your time and your ROE.

Speaker 3: and it'll be a pre-dip throughout the course of this year. So again, appreciate your involvement, appreciate your time, and your interest in the company. So thank you all.

And the company. So thank you all.

Speaker 1: Thank you for attending today's presentation. You may now disconnect.

And thank you Sir the conference has now concluded. Thank you for attending today's presentation. You may now disconnect cheers.

Speaker 10: The and man.

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Okay.

Yeah.

Okay.

Speaker 10: The pro.

Yes.

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Yes.

[music].

Yes.

Okay.

Speaker 10: The.

[music].